Considering these facts, one might think that the Obama administration would be shy about making the personification of Washington’s Wall Street bailouts the front man for their supposed financial reforms. But no, Secretary Geithner took to the op-ed pages of The Washington Post[6] yesterday to make the case for the President’s version of finance reform. After a brief defense of his TARP management, Secretary Geithner writes:

As the Senate bill moves to the floor, we must all fight loopholes that would weaken it and push to make sure the government has real authority to help end the problem of “too big to fail.”
…
Crucially, if a major firm does mismanage itself into failure, the Senate bill gives the government the authority to wind down the firm with no exposure to the taxpayer. No more bailouts. Instead, we will have a bankruptcy-like regime where equityholders will be wiped out and the assets will be sold.

Responding to conservative arguments that their finance reform plan encourages, not discourages, future bailouts, White House blogger Jen Psaki wrote[11] yesterday: “The reality is that there’s a clear choice in this debate: to stand with American families or stand on the side of the big Wall Street banks and their lobbyists who are defending the status quo.” Problem is, it is “the big Wall Street banks” that are supporting the Geithner permanent bailout plan. In their annual letter, current Goldman Sach’s CEO Lloyd Blankfein and President Gary Cohn make the case for more Washington regulation[12]. And as The Washington Examiner’s Tim Carney documents,[13] Obama raised about a million dollars from Goldman Sachs employees and executives in 2008, the most any politician has raised from a single company since McCain-Feingold. And the Obama administration employs many Goldman alumni/lobbyists including Chief of Staff Rahm Emanuel, White House economic advisor Larry Summers, and Treasury Chief of Staff Mark Patterson. So who is really on the side of the American people and who really is doing the work of Wall Street lobbyists?

Quick Hits:

The agreement signed by 46 countries at the end of the White House’s Nuclear Security Summit yesterday is completely voluntary[14] and President Obama later admitted[15] that despite his efforts, he could not promise that China and other major powers would enforce sanctions on Iran.